GREAT NON-ANSWER! It's funny no one can actually explain how any of this is supposed to work. |
Go study elasticity of demand is a perfect answer. Clearly you have never done so. Why should I waste my time on BS rhetoric with someone who won't bother with basic microeconomics? It takes pages to explain (and multiple misunderstandings) what can be answered in one sentence to someone who knows micro. |
Where it is legal individuals do create ADUs, granny flats etc. And most of the affordable homes and apts in this region were built by developers. |
Please. You obviously don't have an answer. Telling people to google economic terms you vaguely remember from high school is not an explanation. If you can't answer even basic questions about your theories, why should anyone take them seriously? All you have is empty rhetoric. |
I am not asking you to google it. I am asking you to study it. Actually take a course. And no, I don't have time to teach you micro econ, esp when you are only trying to make bad faith arguments on an anonymous website. I will make serious arguments before audiences who matter. |
the basic answer is you're wrong. because you do not understand the nature of demand and how it interacts with price. You don't know how demand comes from what economists call utility curves, or how prices acts as a bound on utility. This stuff has been analyzed, across different goods and services, for generations. There is no need to reinvent the wheel for one particular product. FIRST learn the basic concepts, then you can try to make a claim for why there are exceptions. But your questions are not even close enough to logical now - I would have to restate them for you, and doing so is boring and frustrating. You wouldn't even be able to follow the restatement. Maybe one day I will teach intro micro - but only if I get paid for it. |
I probably shouldn't have used the term McMansion. There are many 4-5 bedroom homes in NOVA that could technically be renovated into a duplex. |
THIS IS SO PATHETIC. You can't even explain the first thing about your own theory? "How does that work?" is not some impossible trick question. BTW, the Federal Reserve says you're wrong. Here's a paper where they conclude that adding to the housing supply in places considered desirable to live does almost nothing to reduce housing prices because it just encourages more people to move there: https://www.federalreserve.gov/econres/feds/files/2018035pap.pdf |
|
Most people living in SFH in Fairfax County do not live on one acre lots. They live on .25 to .5 acre lots zoned for sfh. Putting duplexes on these lots --where the infrastructure does not presently exist--will dramatically change neighborhoods, put additional cost to schools, etc.
|
It will dramatically change neighborhoods by...giving a property owner the option of having two residential units on the property instead of one. In other words, it won't dramatically change neighborhoods. |
Emphasis on a paper. Now, tell us the assumptions and limitations of the study. |
Why would a potential buyer want to pay that? You can ask any price you want, but that doesn't necessarily mean anyone will be willing to pay it. Also, the whole purpose of allowing duplexes is to increase the number of residential units. |
Granny flats aren't going to create the affordable housing this area needs. Affordable apartments were built by developers. Affordable single famlity homes in the suburbs? I don't think that exists. Exburbs maybe. |
I did a quick read. From the conclusions: >Motivated by a lack of reduced-form evidence, in this paper, we estimate a structural model of neighborhood choice that allows us to simulate this elasticity They created a model because they simply couldn't build thousands of units to see what happens. Their model is based on some real data, so it's not completely unrealistic. >An important reason for the low rent elasticity in the model is that we estimate a relatively low amount of preference heterogeneity across households. Their model assumes that as long as the rental units have basically the same amenities, the rental prices will be the same. So doubling the housing supply in the same area, isn't likely to lead to lower rents according to their model. |
| No, there are more assumptions and limitations than that. |